Analyzing Curve DAO’s Price Movement as CRV Approaches Another Support Test

Curve DAO token sees 6% Open Interest increase- are speculators bidding?

Curve DAO's token, CRV, recently experienced a 6.6% rise in Open Interest over a 24-hour period, suggesting increased speculative activity. However, CRV's price fell 2.63% in the same timeframe, and it has dropped 9.9% over the past week. With a bearish trend reflected in the wider market, including Bitcoin struggling at the $90k mark, the question arises: is it time for traders to consider short positions on CRV?

Key Takeaways

CRV's Open Interest increased by 6.6%, indicating growing speculative interest.
The token's price declined by 2.63% within 24 hours and 9.9% over the past week.
The analysis of higher timeframes suggests a potential bearish continuation.
Key support levels to watch for include $0.37 and $0.243.
Traders should consider the invalidation point at the $0.38 mark for short positions.

Exploring the Multi-Timeframe Analysis of CRV's Trends

CRV 1-week Chart
Source: CRV/USDT on TradingView

The weekly chart indicates a bearish swing after CRV's price dropped below $0.49. The support level from March at $0.37 has also failed to hold, suggesting selling pressure. The Accumulation/Distribution (A/D) indicator has been declining, highlighting increased selling activity, while the Moving Average Convergence Divergence (MACD) reinforces the downward momentum on the weekly scale.

CRV 6-hour Chart
Source: CRV/USDT on TradingView

Focusing on the 6-hour chart reveals a short-selling opportunity due to a bearish trend, marked by two rapid bearish structure breaks. Furthermore, a fair value gap, or imbalance, was identified up to $0.38 (shown as a white box), which was tested before continuing in a bearish direction.

Identifying the Bears’ Invalidation Point

The structure, momentum, and volume indicators across both analyzed timeframes suggest that bears currently dominate the market. Traders looking to short CRV would see their strategy invalidated if the price rebounds beyond the $0.38 imbalance.

Traders’ Next Steps – Setting Targets

Employing the weekly chart, the next bearish objective can be outlined. This target is the support level of $0.243, where CRV was consistently trading between July and November 2024. In the interim, $0.329 and $0.298 will serve as short-term support levels which may temporarily halt any bearish advances.

Concluding Remarks

Disclaimer: This analysis is for informational purposes only and should not be considered financial, investment, or trading advice. The views expressed here are solely those of the author.